The world's largest technology company by revenue shocked investors when it announced earlier this month that it's considering strategic alternatives for its Personal Systems Group (PSG) -- which includes PCs -- and would kill its new tablet computer included in a major revamping away from the consumer market.
"We prefer a spin-off like a separate company and the working hypotheses is that a spin-off will maintain the best interests of HP's shareholders, customers and employees, " a HEWLETT PACKARD spokeswoman said. "However, we have to complete the diligence process and verify this assumption, including fully understanding the dis-synergies in separating the PSG company from HP. "
Some of the alternatives HP is exploring for the PC unit include hiving from the business into a separate company through a spin-off or sale.
HP said the entire process could take 12 months to 18 months, but a final decision about the unit is expected by the end of this calendar year.
The California-based company may be struggling in the PC market -- a low-margin but high revenue business -- as niftier gadgets for example Apple Inc's iPad have lured consumers away.
HP's WebOS-based TouchPad was killed after sales didn't take off. The company is now also exploring options for its WebOS software program, which it acquired through the acquisition of Palm.